UPDATES.md

# Property Updates

## 2026-07-17

- **Property Update (07/17/2026):**
    - Hi everyone,

    - We completed a review of the June financial data and updated the live Lofty listing financial fields for 917 Pawnee Ave.

    - June accounting results:
    - Actual June revenue: $2,335.00
    - Operating expenses: -$337.38
    - Actual June NOI / Net Operating Cashflow: $1,997.62

    - Full financial summary for June 2026:
    - Revenue: $2,335.00
    - Operating expenses: -$337.38
    - NOI: $1,997.62
    - Net Operating Cashflow: $1,997.62
    - Scheduled monthly rent: $1,145.00
    - Excess cash revenue retained/not annualized: $1,190.00
    - Recurring revenue basis: $1,145.00
    - Recurring NOI: $807.62
    - Recurring Net Operating Cashflow: $807.62
    - Projected annual cash-flow basis: $9,691.44

    - Current reserve and cash position:
    - Lofty OR / maintenance reserve target: $5,000.00
    - Current Lofty OR balance: $5,000.00
    - OR replenishment field: $0.00
    - ECO Operating Cash / GL Column E: $1,677.44 across 41 rows

    - Recurring monthly cash-flow basis: $807.62
    - Projected annual cash flow: $9,691.44
    - CoC / projected rental yield: 7.90%
    - Excess June cash receipts retained/not annualized: $1,190.00

    - Accrual and retention notes:
    - Taxes accrue at $98.38/month.
    - DAO LLC fees accrue at $62.50/month.
    - Any excess above the recurring distribution basis is being retained conservatively rather than over-distributed.

    - Thanks,
    - ECO Systems

## 2026-07-15

- **Property Update (07/15/2026):**
    - Owner-Proposed Governance Vote for 917 Pawnee Ave:
    - An Owner with the following [wallet address](https://allo.info/account/2AQM7LDYFCM47KRIV64ZESAXEAXCMTMJCSXO252LRHRM34WNZE5BVVXA4M) is proposing a governance vote.
    - This owner holds 58 shares in this property.
    - The owner's reasoning is below, word-for-word:
    - Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.
    - Governance Proposal: Strengthening Our Operating Reserve Policy
    - Date: July 15, 2026
    - Proposer: @SolumAlgo
    - Ownership: 58/2,160 shares (2.7%)
    - Dear Co-Owners,
    - I propose we amend our current Operating Reserve (OR) policy to make it more robust. Our older home has had a long-term tenant for many years and has gone without major maintenance for some time. This increases the risk of large repair costs in the near future.
    - Proposed Amendment
    - Increase contributions to 25% of Net Operating Income (NOI) until the OR reaches $10,000.
    - Once the target is met, continue contributing 10% of NOI in perpetuity.
    - The OR will continue to be used only for major repairs and capital improvements.
    - Quarterly statements showing NOI and OR balance will be shared with all owners.
    - Rationale
    - This change builds a stronger financial buffer against upcoming maintenance needs, reduces the likelihood of special assessments, and better protects our shared investment.
    - The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, July 21st, once the voting period ends.

## 2026-04-10

- **Property Update (04/10/2026):**
    - Financial Update:
    - ECO Operating Cash: $1,983.50 (as of April 7, 2026)
    - Tenant placement appears successful - remote deposits totaling $1,200 received on March 19, 2026
    - Property transitioned to ECO Systems management December 2025
    - Current lease term through June 2024 with renewal discussions underway

## 2026-01-16

- **Property Update (01/16/2026):**
    - Governance Results for 917 Pawnee Ave:
    - The Governance Voting results are back for the owner proposed vote.
    - The winning vote is:
    - Yes - Change property management companies to Eco Systems, LLC
    - This voting option received 838 / 838 token votes, which is equal to 100% of the total votes.
    - The voting results can be found on chain [here](https://allo.info/application/3370987692) or by searching the application ID: 337098769

## 2025-12-10

- **Property Update (12/10/2025):**
    - Owner-Proposed Governance Vote for 917 Pawnee Ave:
    - An Owner with the following [wallet address](https://allo.info/account/2AQM7LDYFCM47KRIV64ZESAXEAXCMTMJCSXO252LRHRM34WNZE5BVVXA4M) is proposing a governance vote.
    - This owner holds 1 token in this property.
    - The owner's reasoning is below, word-for-word:
    - Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.
    - Hello Owners,
    - I’m Daniel Murrey, SolumAlgo on Discord. I own 1 token in this property, but I have ~$3200 in USDC staked in the AMM Liquidity pool on this property, and therefore have a vested interest in the success of this property.
    - I wouldn’t be submitting this proposal except that I have seen no other owners step up and take ownership of this major problem!
    - For the month of December we are receiving no rents. If you haven’t been in the discord channel you should stop in and catch up. Our last month's rent was paid like usual to the property management company, HRG (HomeRiver Group Memphis) who has managed the property well for a long time and I know that previously the owners here have opted to not change management companies. Today Max with Lofty confirmed that: “HRG is withholding rent to pay unpaid bills for other properties, and will continue to do so unless owners vote to change managers.” - https://discord.com/channels/847877825373012018/1362189256163856594/1448417983520047177
    - Unfortunately, like Evernest and other legacy property management companies used to manage lofty properties, they have decided to intermingle property funds and instead of treating our property as its own entity they are using our rents to pay for unpaid bills from other properties.
    - Because of this, I am proposing that we move our property management company to Eco Systems, LLC run by Earl. Most of you probably know Earl, he is extremely active in discord, on point with his accounting, keeps his owners up to date with what’s going on with properties. He’s also the only PM who has stepped up and volunteered to add 917 Pawnee to his portfolio. I propose that we make this change immediately so that Earl can begin the work of assigning a new payee account for our tenant so that future rent actually goes to the owners.
    - Earl has proposed a management fee of 10% monthly and first months rent for placing new tenants. This is very fair and standard pricing. Because this is urgent Earl has not put together a formal Property Management Agreement for this property, but I am attaching an agreement from another property so that you can see how he generally operates.
    - This proposal is simple. HRG is robbing you to pay the debts of other properties and has illegally co-mingled funds. I propose we immediately move to allow Earl of Eco Systems LLC to manage this property to limit further loss.
    - Yes - Change property management companies to Eco Systems, LLC
    - No - Stick with HRG
    - [ECO Systems LLC Management Agreement](https://drive.google.com/file/d/1995A7oeJYRGrO8ZNmRSiKX2qmBFwmZ6f/view)
    - The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, December 16th, once the voting period ends.

## 2025-08-22

- **Property Update (08/22/2025):**
    - The tenant cleared their rent balance to $0 on 8/17/25.

## 2025-08-15

- **Property Update (08/15/2025):**
    - The tenant owes an unpaid rent balance of $1,045.
    - The property manager confirmed a 5-day Notice To Vacate was posted on 8/7/2025.
    - The property manager spoke with the tenant on 8/14/2025 regarding their past-due balance and is now in the process of setting up a payment arrangement.
    - Further details will be shared once available.

## 2025-05-21

- **Property Update (05/21/2025):**
    - Governance Results for 917 Pawnee Ave:
    - The Governance Voting results are back for the owner-proposed governance vote to change property managers.
    - The winning vote is:
    - No [do not change property managers to Whalec Property Management]
    - This voting option received 549/902 token votes, which is equal to 60.8% of the total votes.
    - The voting results can be found on chain [here](https://allo.info/application/3007513066) or by searching the application ID: 3007513066

## 2025-05-16

- **Property Update (05/16/2025):**
    - Owner-Proposed Governance Vote for 917 Pawnee Ave:
    - An Owner with the following [wallet address](https://allo.info/account/ZZCRQLKXGUMROJ2TL5XHEC5GVJQJVMNWWEHXN2J7BRFUKNU26LD6JCSYRQ) is proposing a governance vote.
    - This owner holds 25 tokens in this property.
    - The owner's reasoning is below, word-for-word:
    - Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.
    - Hello 917 Pawnee Ave investors,
    - TL;DR (Key Points):
    - PM fee matches HRG (6%) immediately, it'll only increase to 8% NOT stabilized — the 2% savings go to the Operating Reserve.
    - Proposing to replace HomeRiver Group Memphis with Whalec Property Management due to slow communication.
    - I’m the 16th largest investor and believe the property can perform better with more active management.
    - Whalec PM has successfully onboarded 20+ Lofty properties with improved responsiveness and transparency via Discord.
    - We currently manage two top-performing Lofty properties: 440 Louden Ave and 1580 Andover Dr.
    - No renewal fees, no maintenance upcharges, and all repair invoices are transparent via Hemlane.
    - I, Alec VanBeek (@Whalec) on the Lofty Discord, am proposing a vote to switch to Whalec Property Management given the slower responses we have received from the current PM. I am the 16th largest owner in Pawnee and very much believe this property could be performing even better. Whalec Property Management has successfully onboarded over 20 properties with significant improvements to providing updates in the discord chat. I would recommend reviewing the difference in communication. We have adjusted our terms to an agreement that automatically lowers the PM once a property is stabilized and as the property is right now my PM fee will match HRG. We also manage two of the most successful properties of Lofty for 440 Louden Ave and 1580 Andover Dr. I have outlined my terms below:
    - To approve the transition of property management services from HomeRiver Group Memphis to Whalec Property Management
    - Proposed Property Manager:
    - Whalec Property Management
    - Key Terms:
    - Management Fee: 8% of Gross Monthly Rent until the property is stabilized at which point it lowers to 6% of Gross Monthly Rent. At this point the 2% decrease in PM fee will be directly sent to the operating reserve.
    - Definition of stabilized: A property that has been receiving rent consistently for 4 months and has a 100% full operating reserve.
    - Tenant Placement Fee: Equal to First Month’s Rent (only when a new tenant is placed)
    - No Renewal Fees: $0 for lease renewals or re-leasing to existing tenants
    - No Maintenance Upcharge: All maintenance costs are billed at actual cost with no markup directly on Hemlane (All invoices and repairs will be shared transparently in the discord)
    - Maintenance Threshold: The maintenance threshold will be set during the transition for emergency and non-emergency repairs (Ex. $500 threshold for emergency repairs and $150 threshold for non-emergency repairs) (If these thresholds are not met the repairs will be made automatically)
    - Feel free to ping me or DM me on discord. My name is (@whalec) in the lofty discord.
    - Thanks,
    - Alec
    - The winning vote will be determined by a Supermajority of 60%+ and the results will